This survey is now out of date - who would have thought interest rates under 6% would be on offer by the end of January. The percentage of respondents that prefer rental properties will skyrocket over the first quarter of 2008 as interest rates plummet and properties become cashflow positive.

Stevo - what's got your goat? leave Lara alone. i intend to borrow $1m in the next few months to build up my portfolio. i will get cashflow positive properties, enough at least to pay for themselves. some people race cars or go fishing for a hobby, some people purchase properties, hence the supply to the demand of those who are yet in a position to buy one for themselves. don't say i'm greedy, it's just a hobby, i charge fair rent and several tenants have saved enough whilst staying in our places to then be able to afford their own homes, or another example is another couple just purchased a new $45k car.

To drive the point home - if I can borrow a million for 5 to 7 years at 5 or 6% then why not, as long as it services itself. it's only negatively geared property, leasehold property, and overpriced crap and zero knowledge that gives people grief - along with the tenants we all experience in the apprenticeship of becoming landlord.

in fact give me a couple of million, then i can also provide a roof over the heads of those that choose that avenue, and rescue all those moaning savers by ensuring there still is a market for their savings.

Fair call brent, but I will make these points,

Most people don't borrow money for their hobbies, that is so when their hobby crashes they don't find themselves in financial poo.

"if I can borrow a million for 5 to 7 years at 5 or 6% then why not, as long as it services itself"

If the rent can only service the loan, who pays for rates, insurance and depreciation (repairs and maintinance)?

If interest rates go up by the amount that they have come down over the last year during the next 5-7 years how will you service the deficit after coming off the low rates?

I don't think you are greedy, I think you are a speculator, as the only way you can make any $ out of your proposal is by capital gain, and your hope that you have picked the bottom of the housing market.

Good luck with your efforts, I look forward to collecting your interest payments!

Given Britain's on the brink of bankrupcy, the financial sector is yet to reveal the effects of Alt-A and other off balance sheet shenanigans, the EU is reintroducing farm produce subsidies, the economic powerhouse of China is in retreat with the rest of the world (and taking the 'lucky country' down with it) - I wonder whether we'll see the NZ subsidiaries of our Aussie owned banks offering millions on sub 5% fixed rate mortagages over 5 or even 3 year terms in the near future?

Brent and Russell, you are both very correct with your thinking, however jumping the gun by just looking at the low interest rates may be a little premature. Pay a little more interest but ALOT less capital in 9-18 months or so. Just because it's raining and cold outside doesn't mean it's winter. I'm in the market too and see last years bargins as overpriced purchases today.